Muji is reportedly mulling a relocation of its UK headquarters to Germany to mitigate the financial impact of Brexit.
The homewares and fashion retailer is considering moving its head office due to concerns about its ability to make money in the UK after it leaves the EU, a source close to the business told Bloomberg.
The retailer operates 12 stores in the UK and has 50 head office staff. It is not clear how many of these employees would its headquarters were relocated.
A Muji spokeswoman said: “As a company we’re reviewing the risks from Brexit and always considering all available options.
“We have not made a decision on moving our office since no new location has been decided on.”
Muji’s potential relocation follows Japanese firm Panasonic, which unveiled plans to move it European headquarters from the UK to Amsterdam as a result of Brexit. The electronics firm flagged tax implications as another motivation for its relocation to the Dutch capital.
Japan and the EU signed a new trade agreement in July to lower barriers on the movement of goods between the two economies, which the UK is unlikely to benefit from after it leaves the EU next year.
The possibility of the UK lowering its corporate taxes after Brexit could also have a negative backlash on Japanese companies, as their government is likely to consider the UK a tax haven and increase back taxes as a result.